What Is Digital Estate Planning

Estate planning used to focus almost entirely on physical property, financial accounts, and family heirlooms. Today, so much of our lives is online that leaving out digital property can create headaches for loved ones. From online bank accounts to social media profiles, these assets carry both financial and sentimental value. When you create a digital estate plan, you make sure your digital property is accounted for, protected, and accessible to the right people.

Digital Assets to Protect

Digital assets cover a wide range of property stored or managed online. Think beyond money in a bank account. Digital assets can include:

• Online financial accounts like PayPal or Venmo
• Social media profiles such as Facebook, Instagram, or LinkedIn
• Email accounts containing sensitive records
• Subscription services like Netflix, iCloud, or Amazon Prime
• Cryptocurrency and NFTs
• Photos, videos, and creative works stored online
• Access to online businesses, websites, or digital storefronts

In estate planning for digital assets, the first step is identifying what you own. Many people underestimate how much of their daily lives involve digital property. Without clear instructions, family members could face major hurdles trying to access or manage these accounts after your death.

Why You Need a Digital Estate Plan

Creating a digital estate plan ensures your wishes are carried out and prevents confusion for your loved ones. A well-drafted plan can:

• Protect financial value: Cryptocurrency wallets, domain names, or online businesses may carry significant worth. Without proper planning, they could be lost forever.
• Safeguard personal memories: Family photos, messages, and videos often live in cloud storage. Without access, these memories may vanish.
• Prevent identity theft: Unmanaged accounts may be vulnerable to hacking.
• Reduce stress for your family: Clear instructions help survivors know how to close, transfer, or memorialize accounts.

Digital assets estate planning also addresses legal roadblocks. Many companies have strict policies about account access, even for family members. By including instructions and necessary authorizations in your estate plan, you can avoid disputes or delays.

Digital Estate Planning in North Carolina

Each state has its own rules about digital property, and digital estate planning in North Carolina follows the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA). This law allows individuals to give legal authority for someone—usually an executor, trustee, or agent under power of attorney—to manage digital property after death.

Here’s what this means for you:

• You can grant clear legal permission for someone to access your accounts
• Your digital executor can follow your instructions for managing or closing accounts
• Without these permissions, companies may block access entirely, leaving assets in limbo

Digital asset estate planning in North Carolina is about combining practical steps with legal tools. You’ll want to:

1. Make a detailed inventory of your digital property
2. Store login credentials securely, but never in your will (since wills become public)
3. Name a digital executor who can carry out your wishes
4. Work with an estate planning attorney to ensure your documents comply with state law

Just as you wouldn’t create a will that ignores your home, savings, or retirement accounts, you shouldn’t leave out your digital life. The best approach is to integrate your digital plan into your overall estate plan. For example, your trust may hold online business interests or cryptocurrency, while your will can appoint someone to manage accounts that don’t carry financial value but still matter emotionally, like social media.

By weaving estate planning for digital assets into traditional planning, you create one seamless plan. Everything—your house, bank accounts, retirement funds, and digital property—works together under one framework. This coordination avoids gaps and ensures your loved ones won’t have to navigate conflicting instructions or guess at your wishes. Taking a holistic approach to digital estate planning in North Carolina brings peace of mind. You’re protecting both the tangible assets people can see and the digital property that lives behind passwords and encryption. When your estate plan covers it all, you know your legacy is complete.

Take Control of Your Digital Legacy

Your digital life deserves the same attention as your home, savings, and personal belongings. A strong digital estate plan protects your property, memories, and loved ones while reducing confusion after you’re gone. At Caroline Tax, Trusts & Estates, a department of Van Camp, Meacham & Newman, PLLC we help individuals and families across North Carolina integrate digital property into their estate plans. If you’re ready to safeguard your digital legacy, contact our team today to get started.